Todd: Hello… Welcome to Todd Miller TV. I’m joined again with Oana. And I wanted to talk about the new thing from Bank of America. It’s a brand new policy. They just announced that any properties that an investor buys within 60 days of them closing on it, they will not be able to Flip the property. So what they’re gonna do is put a deed restriction on the property. They’re gonna have the investor sign this part of the offer, something stating that within the first 60 days if the house is purchased cash, that they cannot transfer it, sell it, or anything like that. So, obviously your familiar with that from Fannie Mae. Oana: Absolutely! Fannie Mae has been doing that for a long time. The idea is that they want the neighborhood stabilized, they don’t want to see a lot of turn-overs in neighborhoods. By having houses turn-over fast, that hurts neighborhoods. One of the nice thing about that is that this will incentivise investors to hold on to the properties longer and perhaps make repairs and increase values or at the very least, not have values decline further. Todd: Okay. So, really, let’s talk about that a little bit ’cause this is sort of one of the things I’ve seen, investors do. They’ll buy the house, they’ll make repairs, and they’ll put it right back on the market. Eventhough it hasn’t been whatever the time frame is. And then, what they’ll do is they’ll get an offer from somebody and then what they’ll do is they’ll wait like you know, a few weeks in the Escrow and they’ll just like either read, write the agreement with a different date or they’ll just say “well, we can’t close until after this date.” Have you seen that? Oana: Yes! And that’s very typical. Particularly with Deed Restrictions you’ll have that. This is the only case where that happens. There are other deed restrictions like that. So for example, when you have/when someone has a Loan as a you know, The Teacher Next Door Program or something like that, and t hey have a silent second, they’ll do that as well. Because they have to hold on to property for a certain amount of time. They’ll put it on the market and try to time the market. So if they get an offer earlier than expected, they’ll have to have the Escrow date passed when that silent second expires. Todd: So, you know, there are a lot investors in the market. Oana: Yes. Todd: And a lot of their frustrations are all the good houses we can’t get because were being toll owner aux only for the first certain amount of time. So moving forward, do you see this trend continuing? Do you see maybe going back? How do you see like,moving forward, what would you project? Oana: Politically speaking, it makes sense to really get, do as much as possible to get owner occupied in there first. Owner Occupants stays in the properties longer, which stabilizes neighborhoods. We already have sufficient inventories. We really don’t want more inventory because obviously, the more inventory we have, the lower the prices. So you’re going to see a lot of efforts on the part of the banks to stabilize the market through deed restrictions and that sort of things.to anybody, they’re trying to just like you said, stabilize the neighborhood, create home ownership, put owner occupants in the neighborhood homes. So they’re doing the things they shouldn’t be doing. Oana: Absolutely! Plus remember, they’re also doing this for all their self interest too. I don’t know occupant is more unlikely to get a loan. So that means that the bank is more likely to make money off alone. And then the other reason is, the banks have more inventory coming to market so they don’t want investors competing out there with them for selling homes. So, like I said before, the more inventories comes to market, the lower the prices. So they don’t want investors flipping the properties. Todd: Okay. Good. Well that was the update for today, hope to see you on another episode. If you wanna follow me on Twitter, my handle is at lasvegastodd and I’ll see you on the next show. Bye.